GLOBAL MARKETS: Trailing losses in Wall Street on Friday, most Asian stock markets closed in the red today amid mounting worries over global growth prospects after the Fed held off incepting its looming rate-hiking cycle citingconcerns about the latest global economic and financial developments. On the flipside, European bourses moved broadly higher in early trade on Monday on the back of firmer bank and chemical shares. In FX markets, the US dollar recovered some of last week’s losses incurred after the Fed stayed put on its monetary policy and adopted a more dovish than anticipated tone at its meeting last week. This week’s focus primarily lies on flash manufacturing activity data from China and the eurozone on Wednesday as well as on housing data (September 22, 24) and the final Q2 GDP reading (Friday) from the US .

GREECE: The Greek general elections that took place yesterday, Sunday, September 20th, led to a clear victory of the previous Prime Minister Alexis Tsipras and his party SYRIZA. SYRIZA does not enjoy the absolute majority (151 parliamentary seats) that would allow it to form a government on its own and, as the party’s leader suggested late yesterday, will cooperate with Independent Greeks, which was its coalition partner also during its previous term of office. In aggregate they hold 155 parliamentary seats.

SOUTH EASTERN EUROPE

ROMANIA: RON markets closed little changed on a weekly basis on Friday. On the flipside, RON-denominated government bonds came under pressure in the first part of last week as some market participants were bracing for a possible surprise at the Fed meeting on Thursday, but later fully recouped the losses incurred to end the week largely unchanged as the FOMC adopted a more dovish than anticipated tone at its September meeting.

SERBIA: The dinar gained nearly 0.5% against the euro last week, with the EUR/RSD retreating from peak of 120.50/EUR hit a few sessions earlier. Looking ahead, we reiterate that EUR/RSD range-trading around 120.00-120.50/121.00 is likely to prevail in the weeks ahead.